While the broker says that it is still cautious towards the bearing industry and the structural challenges ahead, BarCap notes that SKF's valuation is currently close to a 15-year low relative to its sector.

"That makes the near-term risk/reward look skewed to the upside," it added.

Shares in SKF, which have slightly trailed Stockholm's OMX index this year, are currently up 0.2% at 186.7 Swedish kronor.